Alan is more qualified to answer your question.
Gold seems to have lost its luster and I don't see any rush back into the metal. If the stock market plunges or the economy falls apart, then gold may shoot up, but a lot of people are talking about gold becoming just a commodity metal. If this is the case, then it may be naive to expect the old cycles to continue. If the central banks keep selling, then I don't see enough buying to support, let alone increase, the price of gold. In such a scenario, gold stocks such as RGLD will likely struggle, regardless of how good the company is run, etc.
The last 12 months have been a big surprise to me, and I am very cautious.
Just my opinion.
Best wishes,
Happy |
